CJ Logistics announces new R&D hub in China

CJ Logistics is taking its high-tech research and development lab concept to China in the hope of boosting bilateral business cooperation in logistics and quickly increasing its presence in the country’s vast consumer market.

According to the Korean logistics company on Thursday, it opened up a so-called TES Innovation Center China at the headquarters of CJ Rokin, the company’s Chinese subsidiary in Shanghai, China.

TES stands for technology, engineering and systems and solutions. The center was named after the local research and development hub established in Gunpo, Gyeonggi in May last year.

As logistics becomes increasingly complicated and high-tech, led by innovations from tech giants like Amazon and Alibaba, CJ has been vying to catch up with industry trends by beefing up research.

The new center is filled with the latest technologies and devices developed by CJ, such as the W-Navigator, a smart cart system, with 15 lots.

Each lot, loaded with one box, is linked to specific orders and the cart guides staff through the most efficient picking routes around the warehouse. According to CJ, the device enhances productivity by 20 percent.

Other intelligent machines, such as picking robots similar to Amazon’s Kiva and drones that are currently in development, will be shared with the Chinese center.

With its first overseas R&D base, CJ hopes to quickly expand its presence in the fast-growing Chinese logistics market. Technologies and services specifically catering to China will also be developed there.

While logistics in Korea has widely been perceived as a “3D” industry - dirty, difficult and dangerous - that view has been changing due to recent developments.

“We have been focusing on R&D to innovate our logistics industry as Chairman Lee Jae-hyun of CJ has emphasized the need for logistics to turn into a smart industry,” the company said in a statement on Thursday.

Boosted by research, the company hopes to become one of the world’s top five logistics companies.

CJ Logistics acquired CJ Rokin in 2015.

The company, originally founded in 1985, specializes in cold chain logistics and general cargo, and works with global companies like BASF, L’Oreal and Adidas. Across China, it has 48 terminals and 22 logistics centers.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]